56208 Federal Register / Vol. 71, No. 186 / Tuesday, September 26, 2006 / Notices 

20 In approving this rule change, the Commission 

notes that it has considered the proposed rule’s 

impact on efficiency, competition, and capital 

formation. See 15 U.S.C. 78c(f). 

21 15 U.S.C. 78f(b)(5). 

22 15 U.S.C. 78l(f). 

23Section 12(a) of the Act, 15 U.S.C. 78l(a), 

generally prohibits a broker-dealer from trading a 

security on a national securities exchange unless 

the security is registered on that exchange pursuant 

to Section 12 of the Act. Section 12(f) of the Act 

excludes from this restriction trading in any 

security to which an exchange ‘‘extends UTP.’’

When an exchange extends UTP to a security, it 

allows its members to trade the security as if it were 

listed and registered on the exchange even though 

it is not so listed and registered. 

24 17 CFR 240.12f–5. 

25 15 U.S.C. 78k–1(a)(1)(C)(iii). 

26See NYSE Proposal, supra note 4. 

27 15 U.S.C. 78s(b)(2). 

28 17 CFR 200.30–3(a)(12). 

1 15 U.S.C. 78s(b)(1). 

2 15 U.S.C. 78s(b)(3)(A)(ii). 

3 17 CFR 240.19b–4(f)(2). 

should be submitted on or before 

October 17, 2006. 

IV. Commission’s Findings and Order 

Granting Accelerated Approval of 

Proposed Rule Change 

The Commission finds that the 

proposed rule change is consistent with 

the requirements of the Act and the 

rules and regulations thereunder 

applicable to a national securities 

exchange.20 In particular, the 

Commission finds that the proposed 

rule change is consistent with section 

6(b)(5) of the Act,21 which requires that 

an exchange have rules designed, among 

other things, to promote just and 

equitable principles of trade, to remove 

impediments to and perfect the 

mechanism of a free and open market 

and a national market system, and in 

general to protect investors and the 

public interest. 

In addition, the Commission finds 

that proposal is consistent with section 

12(f) of the Act,22 which permits an 

exchange to trade, pursuant to UTP, a 

security that is listed and registered on 

another exchange.23 The Commission 

also finds that the proposal is consistent 

with Rule 12f–5 under the Act,24 which 

provides that an exchange shall not 

extend UTP to a security unless the 

exchange has in effect a rule or rules 

providing for transactions in the class or 

type of security to which the exchange 

extends UTP. NYSEArca rules deem the 

Shares to be equity securities, thus 

trading in the Shares will be subject to 

the Exchange’s existing rules governing 

the trading of equity securities. 

The Commission further believes that 

the proposal is consistent with section 

11A(a)(1)(C)(iii) of the Act,25 which sets 

forth Congress’s finding that it is in the 

public interest and appropriate for the 

protection of investors and the 

maintenance of fair and orderly markets 

to assure the availability to brokers, 

dealers, and investors of information 

with respect to quotations for and 

transactions in securities. 

In support of the proposed rule 

change, the Exchange has made the 

following representations: 

1. The Exchange has appropriate rules 

to facilitate transactions in this type of 

security in all trading sessions. 

2. The Exchange’s surveillance 

procedures are adequate to properly 

monitor the trading of the Shares on the 

Exchange. 

3. The Exchange will inform its ETP 

Holders in an Information Bulletin of 

the special characteristics and risks 

associated with trading the Shares. 

4. The Exchange will require its ETP 

Holders to deliver a prospectus to 

investors purchasing newly issued 

Shares prior to or concurrently with the 

confirmation of a transaction and will 

note this prospectus delivery 

requirement in the Information Bulletin. 

5. The Exchange will cease trading the 

Shares of a Fund if: (a) The listing 

market stops trading the Shares because 

of a regulatory halt similar to a halt 

based on NYSE Arca Equities Rule 7.12 

or a halt because the IOPV or the value 

of the applicable Underlying Index is no 

longer available; or (b) the listing market 

delists the Shares. 

This approval order is conditioned on 

the Exchange’s adherence to these 

representations. 

The Commission finds good cause for 

approving this proposed rule change 

before the thirtieth day after the 

publication of notice thereof in the 

Federal Register. As noted above, the 

Commission previously found that the 

listing and trading of these Shares on 

the NYSE is consistent with the Act.26

The Commission presently is not aware 

of any issue that would cause it to 

revisit that earlier finding or preclude 

the trading of these funds on the 

Exchange pursuant to UTP. Therefore, 

accelerating approval of this proposed 

rule change should benefit investors by 

creating, without undue delay, 

additional competition in the market for 

these Shares. 

V. Conclusion 

It is therefore ordered, pursuant to 

section 19(b)(2) of the Act, that the 

proposed rule change (SR–NYSEArca–

2006–60), is hereby approved on an 

accelerated basis.27

For the Commission, by the Division of 

Market Regulation, pursuant to delegated 

authority.28

Nancy M. Morris, 

Secretary. 

[FR Doc. 06–8236 Filed 9–25–06; 8:45 am] 

BILLING CODE 8010–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–54464; File No. SR–OCC–

2006–14] 

Self-Regulatory Organizations; The 

Options Clearing Corporation; Notice 

of Filing and Immediate Effectiveness 

of Proposed Rule Change Relating to 

Reduced Discounted Clearing Fees 

September 18, 2006. 

Pursuant to section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 notice is hereby given that on 

August 15, 2006, The Options Clearing 

Corporation (‘‘OCC’’) filed with the 

Securities and Exchange Commission 

(‘‘Commission’’) the proposed rule 

change described in Items I, II, and III 

below, which items have been prepared 

primarily by OCC. OCC filed the 

proposed rule change pursuant to 

section 19(b)(3)(A)(ii) of the Act 2 and 

Rule 19b–4(f)(2) thereunder 3 so that the 

proposal was effective upon filing with 

the Commission. The Commission is 

publishing this notice to solicit 

comments on the proposed rule change 

from interested parties. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The proposed rule change is to reduce 

OCC’s currently discounted clearing 

fees for securities options and security 

futures where at least one side of the 

trade is cleared by an OCC clearing 

member for the period September 1, 

2006, through December 29, 2006. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, 

OCC included statements concerning 

the purpose of and basis for the 

proposed rule change and discussed any 

comments it received on the proposed 

rule change. The text of these statements 

may be examined at the places specified 

in Item IV below. OCC has prepared 

summaries, set forth in sections (A), (B), 


pwalker on PRODPC60 with NOTICES
Federal Register / Vol. 71, No. 186 / Tuesday, September 26, 2006 / Notices 56209 

4The Commission has modified the text of the 

summaries prepared by OCC. 

5 15 U.S.C. 78s(b)(3)(A)(ii). 

6 17 CFR 240.19b–4(f)(2). 7 17 CFR 200.30–3(a)(12). 

and (C) below, of the most significant 

aspects of these statements.4

(A) Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

The proposed rule change would 

reduce OCC’s currently discounted 

clearing fees for securities options and 

security futures where at least one side 

of the trade is cleared by an OCC 

clearing member for the period 

September 1, 2006, through December 

29, 2006. Clearing fees for such 

contracts will be reduced as reflected in 

the following chart. 

Contracts/trade Discounted fee effective July 1, 2005 Discounted fee effective September 1, 2006 

through December 29, 2006 

1–500 ................................................................. $0.05/contract ................................................... $0.035/contract. 

501–1,000 .......................................................... $0.04/contract ................................................... $0.028/contract. 

1,001–2,000 ....................................................... $0.03/contract ................................................... $0.021/contract. 

>2,000 ................................................................ $55.00 (capped) ............................................... $35.00 (capped) 

The additional fee reduction 

recognizes the increased contract 

volume experienced by OCC through 

the first six months of 2006. OCC 

believes that this fee reduction will 

financially benefit clearing members 

and other market participants without 

adversely affecting OCC’s ability to meet 

its expenses and maintain an acceptable 

level of retained earnings. 

OCC believes the proposed rule 

change is consistent with Section 17A of 

the Act because it financially benefits 

clearing members by reducing clearing 

fees and allocates such fees among 

clearing members in a fair and equitable 

manner. The proposed rule change is 

not inconsistent with the existing rules 

of OCC, including any other rules 

proposed to be amended. 

(B) Self-Regulatory Organization’s 

Statement on Burden on Competition 

OCC does not believe that the 

proposed rule change would impose any 

burden on competition. 

(C) Self-Regulatory Organization’s 

Statement on Comments on the 

Proposed Rule Change Received From 

Members, Participants, or Others 

Written comments were not and are 

not intended to be solicited with respect 

to the proposed rule change, and none 

have been received. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

The foregoing rule change has become 

effective upon filing pursuant to section 

19(b)(3)(A)(ii) of the Act 5 and Rule 19b–

4(f)(2) 6 thereunder because the 

proposed rule establishes or changes a 

due, fee, or other charge. At any time 

within sixty days of the filing of such 

rule change, the Commission may 

summarily abrogate such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views, and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml) or 

• Send an e-mail to rulecomments@sec.gov. Please include File 

Number SR–OCC–2006–14 on the 

subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Nancy M. Morris, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number SR–OCC–2006–14. This file 

number should be included on the 

subject line if e-mail is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

Internet Web site (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for inspection and copying in 

the Commission’s Public Reference 

Section, 100 F Street, NE., Washington, 

DC 20549. Copies of such filing also will 

be available for inspection and copying 

at the principal office of OCC and on 

OCC’s Web site at http:// 

www.optionsclearing.com. All 

comments received will be posted 

without change; the Commission does 

not edit personal identifying 

information from submissions. You 

should submit only information that 

you wish to make available publicly. All 

submissions should refer to File 

Number SR–OCC–2006–14 and should 

be submitted on or before October 27, 

2006. 

For the Commission by the Division of 

Market Regulation, pursuant to delegated 

authority.7

Nancy M. Morris, 

Secretary. 

[FR Doc. 06–8237 Filed 9–25–06; 8:45 am] 

BILLING CODE 8010–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration # 10610 and # 10611] 

Maryland Disaster # MD–00005 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice. 

SUMMARY: This is a notice of an 

Administrative declaration of a disaster 

for the State of Maryland dated 09/18/ 

2006. 

Incident: Tropical Storm Ernesto. 

Incident Period: 09/01/2006 through 

09/02/2006. 

EFFECTIVE DATE: 09/18/2006. 

Physical Loan Application Deadline 

Date: 11/17/2006. 

Economic Injury (EIDL) Loan 

Application Deadline Date: 06/18/2007. 

ADDRESSES: Submit completed loan 

applications to: U.S. Small Business 


pwalker on PRODPC60 with NOTICES